Bankruptcy Exemptions in Maryland
What property you can keep in bankruptcy in Maryland: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Maryland filers must use Maryland exemptions: "In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by § 522(d) of the federal Bankruptcy Code." Md. Code, Cts. & Jud. Proc. § 11-504(g)
| State or federal exemptions | Maryland filers must use Maryland exemptions: "In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by § 522(d) of the federal Bankruptcy Code." |
|---|---|
| Homestead exemption | In bankruptcy, the debtor's interest in owner-occupied residential real property (including a condominium or a manufactured home converted to real property) or a housing cooperative, up to the amount in 11 U.S.C. 522(d)(1) as adjusted under 11 U.S.C. 104. It cannot be claimed on a property if the debtor or a close relative successfully claimed it on that property within the prior 8 years, and both spouses cannot claim it in the same case. The statute ties the amount to the federal homestead figure rather than stating a dollar amount; the current adjusted federal figure was not confirmed from an official source here. |
| Car exemption | No separate motor vehicle exemption. A vehicle can be protected only through the general exemptions: up to $6,000 in cash or property of any kind (combined with the $500 automatic bank-account exemption) and, in bankruptcy, up to $5,000 in personal property. |
| Wildcard exemption | Cash or property of any kind up to $6,000 (combined cap with the $500 automatic deposit-account exemption), plus, in bankruptcy only, personal property up to $5,000. |
| Retirement accounts | Money or assets in, or payable from, retirement plans qualified under Internal Revenue Code sections 401(a), 403(a), 403(b), 408, 408A, 414(d) or 414(e) are exempt from all creditors other than the Maryland Department of Health (with exceptions for qualified domestic relations orders). |
| Wages | Exempt from attachment: the greater of 75% of disposable wages due, or 30 times the Maryland minimum hourly wage times the number of weeks in which the wages were earned; plus medical insurance payments deducted from wages. Source: Md. Code, Com. Law § 15-601.1(b) |
More Maryland bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Maryland?
Maryland filers must use Maryland exemptions: "In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by § 522(d) of the federal Bankruptcy Code."
How much home equity is protected in bankruptcy in Maryland?
In bankruptcy, the debtor's interest in owner-occupied residential real property (including a condominium or a manufactured home converted to real property) or a housing cooperative, up to the amount in 11 U.S.C. 522(d)(1) as adjusted under 11 U.S.C. 104. It cannot be claimed on a property if the debtor or a close relative successfully claimed it on that property within the prior 8 years, and both spouses cannot claim it in the same case.
Can I keep my car in bankruptcy in Maryland?
No separate motor vehicle exemption. A vehicle can be protected only through the general exemptions: up to $6,000 in cash or property of any kind (combined with the $500 automatic bank-account exemption) and, in bankruptcy, up to $5,000 in personal property.
Does Maryland have a wildcard exemption?
Cash or property of any kind up to $6,000 (combined cap with the $500 automatic deposit-account exemption), plus, in bankruptcy only, personal property up to $5,000.
Are retirement accounts protected in bankruptcy in Maryland?
Money or assets in, or payable from, retirement plans qualified under Internal Revenue Code sections 401(a), 403(a), 403(b), 408, 408A, 414(d) or 414(e) are exempt from all creditors other than the Maryland Department of Health (with exceptions for qualified domestic relations orders).
Are wages protected in bankruptcy in Maryland?
Exempt from attachment: the greater of 75% of disposable wages due, or 30 times the Maryland minimum hourly wage times the number of weeks in which the wages were earned; plus medical insurance payments deducted from wages.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.